Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Silver is biting at the heels of a record-setting gold rally, snapping upward with renewed momentum. This strength could elevate prices to $43.50 by the end of the year, according to Debajit Saha of the London Stock Exchange Group (LSEG).
The firm’s Lead Metals Analyst maintains an upbeat outlook due to the shiny metal’s dual-source demand and the green energy boom. At a lower price point and far from all-time highs, silver is emerging as a shinier option for investors as gold soars to fresh records.
A Bullish Breakdown
The top precious metals analyst at LSEG believes silver will top out at $43.50 in 2025, representing more than a 53% rise from the 2024 average of $28.27. Even this year’s projected average of $35.10 is bullish, with a nearly 24% gap from 2024 levels. This base case scenario falls in line with the average 2025 silver price forecast among experts.
Although silver has posted gains similar to gold so far this year, it’s still considered “undervalued” due to its lower price and how far it remains from its all-time high. The gold-to-silver ratio, which shows how many ounces of silver are needed to buy one ounce of gold, has stayed elevated between 90:1 and 100:1. This elevated ratio suggests that silver is relatively “cheap” compared to gold.
Dual Demand Power
Silver’s dual role as an investment and industrial metal is the primary catalyst for LSEG’s optimistic forecast.
While gold is mainly used for portfolio hedging, silver is highly sought after for its inherent value and unique physical properties.
As Saha describes, “In 2024, global investors demonstrated significant confidence in silver for asset diversification and…as an industrial metal.”
This dual demand is likely to power similar growth in 2025, with both streams expected to see significant increases.
The Silver Institute projects manufacturing consumption to reach a record of 700 million ounces (Moz) next year.
Purchases of physical bullion are on track to grow by 3% year-over-year. These combined segments are on pace to strain stagnant resources, resulting in a massive supply deficit in 2025. This would mark the fifth year in a row that consumption has eclipsed resources.
The “Go Green” Boom
Saha highlights the green energy movement as a significant driver of industrial demand and, as a result, silver prices.
Demand for the shiny metal has surged due to its key role in solar panels, electric vehicles, and other renewable energy projects, sparking renewed interest around the globe. This demand isn’t limited to large economies; smaller nations are also investing in their energy infrastructure, further boosting global consumption.
As the Lead Metals Analyst explains, “The transition to solar and other renewable energy sources will continue to benefit silver.”
This positive forecast is shared by Michael DiRienzo, Chief Executive of the Silver Institute: “The electrification of the world is really providing a boon to silver.”